Discount retailer Big Lots has filed for Chapter 11 bankruptcy protection. In its filing with a Delaware bankruptcy court on Monday, Sept. 9, Big Lots lists its assets and liabilities in the range of $1 billion to $10 billion.
As part of the Chapter 11 process, Big Lots stores and its website will remain open for shoppers. The Columbus, Ohio-based company said it has secured $707.5 million in financing to support its business.
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Big Lots has 1,400 stores across the U.S. with 30,000 employees. The company said private equity firm Nexus Capital is acquiring “substantially all” of its stores and operations.
Nexus Capital will serve as what’s known as a “stalking horse bidder” in the court-supervised auction process. This means its acquisition is expected to close later this year — unless a better offer comes along.
Big Lots blames its current situation on factors like high inflation and interest rates and changes in customer spending habits. Big Lots is already in the process of shuttering around 300 stores but said additional closures are planned as the company continues to evaluate its operations.
